Tuesday, February 26, 2008

Inflationary Recession (Lew Rockwell)

Lew Rockwell blogs on the state of our economy:

We're in another one of those impossible situations, according to classical Keynesian economists: an economic downturn with rising prices. One of the econoboobs on cable TV today said this was bad news, since it made things harder for the Fed! Not for consumers gouged by the central bank. And note, as Joseph Salerno points out, recession was originally a euphemism, for depression, itself a euphemism for the 19th century terms, panic and crash. But whatever you call it, we have been put in a pickle by the central bank, Greenspan, Bush, and Congress. And nothing is beyond the pols of both predatory parties, as the downturn turns down. Watch for talk of price and wage controls, exchange controls, and more stimulating war. You know, the doctine that mass murder and property destruction, combined with vast transfers from taxpayers to the merchants of death, are good for the economy.

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